Sustainability Report 2015 - Heineken UK · Environment (climate change, environmental protection, water, waste, energy) 2. Public health (responsible consumption, obesity) 3. Economic

Brewing a Better World

Sustainability Report 2015

A year of collaboration for good

Welcome to our Sustainability Report and an update on how we performed in 2015.

In terms of the big picture, there’s a lot the business can be proud of. We’ve turned around cider sales and are in a great place with our Star Pubs and Bars estate.

That said, we’re still operating in a challenging market. Beer volumes are declining and competition is tough, especially in the grocery market. And we’re not alone in dealing with some major sustainability issues – climate change and sustainable farming to name just a couple.

Faced with difficult situations is a constant reminder of the volatile world we live in. But importantly, this drives us to innovate – to look for new and better ways to do things. Our Brewing a Better World strategy is so important to our business because it makes us continually innovate and improve. It helps us have a positive impact on the people and places where we work. It’s what makes us different.

To deliver our strategy – and have a lasting impact – we need partners. We need everyone involved in our business to help us on our sustainability journey. 2015 has been a great example of how we work in partnership to deliver on our ambitions.

2015 marked the 10th year of our partnership with Addaction, the UK’s largest alcohol addiction charity. People often ask, how can an alcohol company work so well with a charity that’s dealing with alcohol harm? But great businesses shouldn’t shy away from difficult conversations, and our long-standing partnership shows what can be achieved when they don’t. It’s gone from strength to strength over the last 10 years and has brought about real change. I was particularly proud of how our colleagues continued to respond to our Act for Addaction campaign in 2015. Their enthusiasm for our partnership saw us collectively volunteer 1,940 hours and fundraise £336,000 to help the service users we support over the past two years.

Our ‘moderation movement’ also gained momentum in 2015. We aired the third in a series of responsible drinking ads, ‘Moderate Drinkers Wanted’, which reached around 6.3 million consumers.

To help UK barley farming become more sustainable, we’re working with our barley suppliers on an exciting initiative, Profiting from Sustainability. It’s ground-breaking because it brings together not only the actors in our supply chain – but other major businesses and their suppliers too, working together to create a sustainable food system.

We’re enlisting the help of our colleagues to make health and safety HEINEKEN’s number one priority. 2015 was a disappointing year for our safety record with 11 accidents. We clearly have more work to do, but I’m confident we can get back on track. We’ve developed 12 Life Saving Rules which we’ll be rolling out in 2016, along with a safety awareness campaign. And importantly, I know everyone in the business is fully on board with our mission to create a culture where safe behaviours are lived day in day out.

By working with colleagues, suppliers and charities – and all those involved with our business – we’re able to have a lasting positive impact. In 2016, we’ll further invest in the strong partnerships we’ve fostered. We’ll respond to our partners’ guidance on how we can better support the communities where we work, promote alcohol moderation and continue to reduce our environmental impacts across our supply chain.

David FordeManaging Director, HEINEKEN UK

8 August 2016

A Word from David

David Forde, Managing Director

Introduction Our Focus Areas Our People Our Partners

HEINEKEN UK Sustainability Report 2015 2

Our Values Our values represent what we stand for as a business and employer. They inspire us and are brought to life by our colleagues at every level and function.

Our UK business

Brands and pubs that people love Enjoyment of life Respect for people

and planet

h perfect cider & beer experiences.

QualityOur passion for quality is at the heart of everything we do.

Tadcaster Herefordshire

London Star Pubs & Bars

Livingston Edinburgh Caledonian Brewery

Manchester

h perfect cider & beer experiences.

QualityOur passion for quality is at the heart of everything we do.

Tadcaster Herefordshire

London Star Pubs & Bars

Livingston Edinburgh Caledonian Brewery

Manchester

Passion for quality

Our Locations



BREWINGA BETTERWORLD

PROTECTING WATER RESOURCES

REDUCING CO2 EM

ISSION

S

SOURCING S

USTA

INAB

LY

ADVOCATING RESPONSIBLE CONSUMPTION

PROM

OTING HEALTH AND SAFETY

GRO

WIN

G W

ITH

COM

MUNIT

IES

Our focus areas

Our six business priorities

1. Win in premium led by Heineken®

2. Shape the cider category3. Lead by cool marketing & innovation4. Be commercially assertive5. Drive end2end productivity6. Brewing a Better World

REDUCINGCO2 EMISSIONS

SOURCINGSUSTAINABLY

ADVOCATINGRESPONSIBLECONSUMPTION

PROMOTINGHEALTH ANDSAFETY

GROWING WITHCOMMUNITIES

VALUES ANDBEHAVIOURS

AGRICULTURE

FOCUS AREAS

MALTING BREWING PACKAGING DISTRIBUTION CONSUMERCUSTOMER

PROTECTINGWATERRESOURCES

Our focus areasWe focus on the six areas that are most important to our business and stakeholders and where we can make the biggest difference. Our approach to sustainability covers the entire value chain, from Barley to Bar.

Biodiversity

Diversity

Labour ConditionsHuman Rights

Sustainable Sourcing

Responsible Consumption

Water

Energy & Carbon

Economic Impact & Tax

CircularEconomy*

Community Investment

Business Conduct

Health & SafetyGene Technology

Remuneration

Impo

rtan

ce to

stak

ehol

ders

High

Low

Current or potential impact on HEINEKENHighLow

Focus Area Global Policy/Standard Locally Managed New

Our most important issuesIn 2015 we updated our materiality matrix based on an ongoing dialogue with our stakeholders, reputation research, benchmark results and internal risk analysis. The top three clusters mentioned were:

1. Environment (climate change, environmental protection, water, waste, energy)

2. Public health (responsible consumption, obesity)3. Economic conditions (growth, competitiveness, unemployment,

income)

Brewing a Better WorldSustainability at HEINEKEN is one of our six business priorities. Brewing a Better World is designed to create economic opportunities for both our business and our stakeholders.



AGRICULTURE

EMPLOYEES

DISTRIBUTION CUSTOMERS

PACKAGING

COMMUNITY

CONSUMERS

BREWING

Brewing beer and making cider is a craft. We own 11 malteries across the world and buy malted barley from business partners who have all signed our Supplier Code. We also operate 156 breweries, cider plants and other production facilities. Strict safety standards are adhered to. We invest in capacity expansion and build greenfield breweries, respecting all land rights. We are committed to improving energy and water e�ciency and switching to more environmentally friendly energy sources where feasible.

The majority of our beer and cider is served in bottles, cans and kegs. We are constantly looking to innovate, finding ways to optimise the production of our packaging materials, such as light-weighting and increasing the recycling and re-use rate.

The movement of our products around the globe is carefully managed. Several modes of transport are used, including road, rail and ocean freight as well as inland barges. Health and safety policies are in place to reduce the incidence of accidents. We optimise the distribution by changing the form of transport, training drivers on road safety, using more e�cient engines, improved vehicle design and reassessment of distribution networks.

Millions of retailers, bars, restaurants and clubs serve a selection of our brands. New fridges purchased by HEINEKEN meet green standards and we continue to develop greener draught brewing equipment. We work in partnership to ensure our products are only sold to consumers of legal drinking age.

Growing with communities underlines our ambition to have a positive impact in the communities where we live, work and sell our products. Our support is based on three building blocks: direct contributions made locally, shared-value projects, and on the African continent the Heineken Africa Foundation. The biggest contribution we make to communities is through the positive impact of our business itself: creating jobs, providing business to suppliers and paying taxes that support local and national development.

Every day, millions of consumers in 179 countries choose to enjoy one of our more than 250 brands. We provide choice through our premium portfolio approach. Innovations, especially in the low- and no-alcohol categories, are meeting changing consumer tastes. Across the world we engage consumers on responsible drinking, most notably with the Heineken® brand campaigns.

HEINEKEN employs more than 81,000 people. They enjoy the benefits and rewards – pay, training, healthcare, career opportunities – their hard work deserves. The HEINEKEN Employees’ and Human Rights Policy supports and guides us all to act according to our core values. And our global Code of Conduct provides guidance so that every employee knows what is expected of them. The annual employee ‘Climate’ survey tracks engagement levels and action is required on dimensions that fall short.

We work with farmers worldwide to sustainably grow raw materials, like barley and hops, needed to brew our beers. In addition, we use bittersweet apples for cider making. Local sourcing is a priority because of the shared value it creates for the local communities, the country and for HEINEKEN.

MALTING

HEINEKEN InputsFinancialShareholders’ equity, Capex, assets and borrowing

NaturalLand, water, energy, biodiversity and ecosystem

HumanEmployees, training and benefits, safety and Code of Conduct

ManufacturedBuildings, breweries, packaging materials, transport, equipment and supply chain

SocialCommunities, NGOs, customers, suppliers and trade groups

IntellectualBrands, R&D, innovation, processes and corporate reputation

HEINEKEN OutputsFinancial€20.5 billion revenue €822 million income tax expense (beia) 27.8% e¡ective income tax rate (beia) Total dividend of €1.30 per share (to be approved at 2016 AGM)

NaturalSustainably sourced raw materials:21% barley, 53% hops and 71% bittersweet apples21% renewable electricity under green certificates 2% own-generated renewable electricity 3.8% renewable thermal energy used

HumanOver 1.5 million training hours completed by employees50,000 employees completed HeiCode e-learning training 2,000+ employees completed Road safety training 6,000+ employees completed Anti-bribery e-learning module 53 nationalities represented in senior management 77% employee ‘Climate’ engagement score

Manufactured167 breweries, malteries, cider plants and other production facilities 26% water reduction since 2008 24% energy reduction since 2008115,000+ green fridges purchased in 2015 with 45% average energy saving compared with 2010

Social€23.6 million donations€10 million increase in endowment fund Heineken Africa Foundation to €30 million in total in 2016 9.7% media spend on Enjoy Heineken® Responsibly50 operating companies have a partnershipto address alcohol-related harm• Participation in Global Commitment to reduce alcohol-related harm• Direct and indirect job creation• Healthcare support

Intellectual4.15 (out of 5) reputation rating across 30 countriesand 3,000 external stakeholders250+ brands€1.9bn revenue from innovations

From Barley to Bar – a global overviewWe pursue an increasingly holistic approach to sustainability. Our strategy focuses on the entire value chain ‘From Barley to Bar’. This value chain includes many forms of capital, from the vital natural resources needed to make our products, through to financial capital from the sale of our products. We continuously consider the sustainability of each step with respect to our key focus areas.

This overview was first published in the 2015 Annual Report. It has been updated to include final, assured non-financial data.



What we said and what we’ve done

1 Baseline 2008. 2 Twenty-three production units. 3 Baseline 2010/2011, scope is Europe and Americas, 24 of our largest operations: Belgium, Bulgaria, France, Ireland, Italy, Netherlands, Portugal, Spain, Switzerland, UK, Austria, Belarus, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Brazil, Mexico, USA. Scope represents 80% of volumes traded. HEINEKEN Asia Pacific is not in scope of the 2015 commitment as the business was not consolidated at the time the commitment was made. 4 Baseline 2010.

Focus Area Global 2015 commitments

What we’ve done globally in 2015

What we’ve done in the UK in 2015

Progress indicator

Global 2020 commitment

Reduce specific water consumption in our breweries to 3.9 hl/hl1

AchievedReduced to 3.7 hl/hl (-26% vs 2008)

AchievedReduced water use to 3.4hl/hl (-19% vs 2008)

In 2014 we raised our ambition for 2020 to 3.5 hl/hl1 overall, and 3.3 hl/hl on average for breweries in water-scarce and water-distressed areas

100% of our production units2 in water-scarce and water- distressed areas will have a Source Water Protection Plan

Partly achievedTwenty of 23 production units in scope have a Source Water Protection Plan (representing 99% of total production volume of units in scope)

NA Aim for significant water compensation/balancing by our production units in water-scarce and water-distressed areas

Reduce CO2 emissions in production by 27%1 (resulting in 7.6 kg CO2-eq/hl)

Achieved36% reduction compared with 2008, resulting in 6.7 kg CO2-eq/hl in 2015

AchievedReduced by 17% vs 2014 and 41% vs 2008 (i.e 5.9kg CO2-eq/hl in 2015).

Reduce CO2 emissions in production by 40%1

Reduce the CO2 emissions from distribution by 10%3 in Europe and the Americas

Not achievedIncreased by 1.7%. Mainly due to production footprint in Mexico, our biggest market. In Europe, we reduced emissions by 9.8%

Not achievedReduced by 0.6% vs 2011

Reduce the CO2 emissions from distribution by 20% in Europe and the Americas

Reduce the CO2 emissions of our fridges by 42%4

AchievedReduced CO2 emissions by 45% vs 2010. 100% of over 115,000 fridges purchased were ‘green’.

Achieved100% of fridges purchased were ‘green’

Reduce the CO2 emissions of our fridges by 50%4

Achieved On track Partly achieved Not achieved



1 Based on volume. 2 In scope are barley, hops, cider apples, fruit concentrates, sugar, rice, sorghum, wheat, maize. 3 Based upon tonnage. 4 With local sourcing we refer to sourcing within the region of Africa & Middle East. 5 With local sourcing we refer to sourcing within the region of Africa & Middle East. 6 HEINEKEN Asia Pacific is not in scope of the 2015 commitment as the business was not consolidated at the time the commitment was made. They are in the process of becoming compliant in the coming years. 7 Investments dedicated to responsible consumption messaging with regards to Heineken® brand communication. This includes the ‘Dance More Drink Slow’ and ‘Sunrise’ campaign, UEFA® Champions League-specific responsible consumption boarding and other specific activations at festivals and events. 8 Market scope, covering in total at least 50% of Heineken® global volume. We focus our efforts on the larger markets where we can make the biggest impact; out of scope are those markets where we are unable to run our responsible consumption campaign due to local (legal and religious) restrictions on alcohol advertising. 9 The 50 operating companies, which cover 48 markets, include all HEINEKEN markets except Islamic countries, markets where we have a Joint Venture and three minimal-volume markets for who allocating resource is unrealistic (Laos, Solomon Islands and Sri Lanka).

What we said and what we’ve doneFocus Area Global 2015

commitments What we’ve done globally in 2015

What we’ve done in the UK in 2015

Progress indicator

Global 2020 commitment

Aim for sustainable sourcing of raw materials for crop year 2015: 20% (barley), 40% (hops), 60% (bittersweet apples for cider)1

AchievedIn 2015 we sourced sustainably:• barley: 21%• hops: 53%• apples: 71%

AchievedSustainably sourced:

barley: 100% apples: 73%

Aim for at least 50% of our main raw materials2 from sustainable sources

50%3 of agricultural raw materials used in Africa to be locally sourced4 within the continent

Partly achievedAn estimated 49% were sourced locally – up from 48% in 2014

NA Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent

Four-step Supplier Code Procedure operational within all operating companies6

Partly achievedOperational in 46 out of 50 companies in scope (representing 99% of in scope sales volume)

AchievedIn place and 100% of suppliers complied

Ongoing compliance with our Supplier Code Procedure

We commit to invest a minimum of 10% of our media spend7 for Heineken® in supporting our dedicated responsible consumption campaign in at least 50% of our market volume8

Partly achieved9.7% of total media spend in our main markets, representing 51% of the Heineken® global volume

NA – Heineken continued to promote responsible drinking through its sponsorship of the Rugby World Cup, with responsible drinking messages included at rugby stadiums across thecountry and on television advertising

Make responsible consumption aspirational through Heineken®

Every market in scope9 has a partnership to address alcohol-related harm

AchievedFifty operating companies, across 48 markets, have a partnership in place to address alcohol-related harm

Achieved Partnered with alcohol addiction charity Addaction to tackle alcohol harm since 2005

Every market in scope has and reports publicly on a measurable partnership aimed at addressing alcohol abuse

All partnerships meet HEINEKEN’s seven-point partnership criteria

Partly achieved56% have met all our partnership criteria representing 72% of the beer volume in scope

Achieved Partnership with Addaction meets criteria

Contribute to the five industry commitments and related KPI’s, as defined through the International Alliance for Responsible Drinking (IARD)

On trackSeptember 2015, the signatory companies published a second Commitments Progress Report outlining our actions to date

NA NA

Achieved On track Partly achieved Not achieved



http://www.producerscommitments.org/wp-content/uploads/2015/09/2014-Progress-Report-Interactive.pdf

In 2016, I’ll be taking on the role of Corporate Relations Director for HEINEKEN UK. Thinking about what’s next has naturally made me reflect on the past – and what the UK businesses has achieved. 2015 was a stand-out year in my mind. In the spirit of our HEINEKEN behaviour to ‘keep it simple’, I’ll do just that! Here are my top highlights of 2015:

David Paterson, Corporate Relations Director, HEINEKEN UK

David’s 2015 best bits

Launching the third in a series of ground-breaking responsible drinking ads by the Heineken® brand, Moderate Drinkers Wanted, which reached 6.5 million people, helping make moderate drinking cool. Watch it here.

Brewing 20 million pints using solar energy at our Tadcaster Brewery in Yorkshire – the UK’s largest solar brewery (and no jokes about solar in Yorkshire please!).

Bringing the magic of orchards to another 40 local communities across the UK. Through Helping Britain Blossom, we’re on track to create or restore over 100 community orchards in urban areas – bringing people together to enjoy their fruits and spend time with friends and family.

Investing around £30 million into our pub estate, Star Pubs and Bars. Our year on year investment is transforming run-down pubs into thriving businesses and supporting our licensees to restore them as hubs for local communities to enjoy.



https://www.youtube.com/watch?v=5A4v3vyHWOU

✔Conversations with over 60 key stakeholders

90% said they trust HEINEKEN

Sharing our experience

We took an active role in roundtables and panel discussions to share our experience and hear from others. These included:

• Third Sector’s Big Donnor Summit, April

• Brewing a Better World Conference, June

• Strategic Win-Win Corporate Charity Partnerships, October

• Communicate: Challenging Partnerships, November

Our stakeholders told us

• Challenging economic conditions are a top concern. We should continue to enhance our employees’ skills and create new jobs to contribute to growth.

• Public health, in terms of sugar and obesity, are key emerging issues that need a long-term strategy.

• We’re leading the industry in promoting responsible consumption – but could go further to expand our portfolio of low and no alcohol products.

• Good progress on reducing our carbon footprint. We need to do more on reducing water use in our supply chain.

• Investing in pubs through Star Pubs and Bars is helping safeguard the community pub and expanding job opportunities.

We maintain ongoing dialogue with our stakeholders, and each year, we engage with them formally to have detailed discussion on how we’re doing and how we could improve. In 2015 we:

1. Conducted around 60 interviews (phone and online) – with our key stakeholders, including sustainability, media, government and customers. This was part of global research in which HEINEKEN interviewed more than 2,400 stakeholders in 30 markets.

2. Held a Brewing a Better World conference – with around 50 stakeholders to get detailed insight on some of our key issues such as sustainable sourcing, dealing with alcohol harm and community investment.

Listening and responding to our stakeholders



Protecting water resources

For more on water priorities and why this is important, see our website.

The Big Picture Water is vital to our business. It’s essential to grow the quality hops, barley and apples that we rely on to make our beers and ciders, and of course, beer is 95% water so no water means no beer!

Water scarcity is now a major global issue. Around 800 million people can’t get clean drinking water. Most of these people live in areas of water scarcity in Africa and Asia, but we also have a responsibility in the UK to protect water resources.

Beer is 95% water, so no water means no beer!

95%



http://www.theheinekencompany.com/sustainability/focus-areas/protecting-water-resources

3.8

2015 3.4

3.62014

3.62013

3.82012

2011

4.02010

4.42009

2008 4.3

19%Decrease in water use / hl compared with 2008

average water use

3.4 hl/hl

Brewing beer uses a lot of water, so we’re working hard to find new, more efficient ways of doing it. Our multi-million pound investment into our sites has allowed us to install more water efficient equipment – and importantly, we’re also making our existing equipment more efficient, and finding new ways of doing things, that cut water use. It’s clearly paying off. Our water use is down to 3.4hl/hl – that’s a reduction of 19% since 2008. Looking ahead, we’ll continue to focus on producing even more beer with less water. Jochen van Esch, Brewery and Operations Director, UK

How we’re responding

Our operations Since 2014 we’ve invested over £100 million into improving the efficiency and capacity of our brewery in Manchester and ciderie in Hereford. This year, we began to see the impact of our investment as we reduced our water use by 5% compared to 2014, down from 3.6 hl/hl to 3.4hl/hl. Compared to 2008, we’re using 19% less water to make one hl of beer. This meant we exceeded our global target of 3.5hl/hl by 2020.

As part of this investment we focused on installing modern, water efficient equipment. For example, at Hereford we installed a new pasteuriser that uses around 1 million less litres of water a year, while giving us flexibility for faster and more efficient processing.

1 Hecolitre of water to make one hectolitre of beer (hl/hl). 2 Compared to existing pasteuriser.3Water Footprint Network, Product Gallery.

2015 progress Specific water consumptionhl/hl beer + cider + soft drinks + water

3.4

Across all our breweries we worked to improve the efficiency of our existing machinery. At our John Smith’s brewery in Tadcaster we installed a control system on our bottling pasteuriser which saved over 1.1 million litres of water in 2015. We also installed new water metering on our main machinery. This sends accurate data on water use every ten minutes to a centralised system, so any unexpectedly high use can be identified and corrected.

More beer for less water

As we become more water efficient, we can increase our production while maintaining or reducing our water use. For example, in 2015, our Tadcaster brewery produced 50,000 hl more beer, but using 30,000 hl less water than it did the previous year.

Do you know how much water it takes to make your favorite drinks?3

Product

Water footprint (global average)

108 litres of water per litre of tea

298 litres of water per litre of beer

870 litres of water per litre of wine

1,020 litres of water per litre of milk

1,056 litres of water per litre of coffee

% footprint via rainfall 82% 85% 70% 85% 96%



75%SmartDispense can cut pubs’ water use by

Smar

tDisp

ense

pints of water saved

25 million

We’ve driven real change in the UK draught beer and cider market. Compared to traditional draught cooling systems, SmartDispense uses 75% less water, 20% less energy and reduces chemical use in cleaning. But importantly it’s a commercial product so we can deliver major environmental benefits while supporting business growth. Simon Gray, Draught Dispense Development Controller

Manchester

Amsterdam

Case study:Innovative beer dispenser saves 25 million pints of water

Put all the water SmartDispense has saved into Foster’s glasses and you could line them up from our Manchester brewery to Amsterdam!

Our SmartDispense technology has revolutonised the way draught beer and cider is stored and served. It’s a self-contained, highly-efficient cooling and dispense unit that reduces the need for cellar cooling, and the frequency of cleaning which:• Reduces water use by around 75%* • Reduces energy use in excess of 20%* • Reduces chemical use in cleaning • Cuts beer waste and improves the quality

of the product for consumers• Saves the average pub thousands of

pounds a year**

*compared to traditional beer dispense systems** Based on reduced energy use and waste.

Savings vary depending on size of pub

Helping our customers use less waterBeyond our own operations, we’re helping our customers reduce their water use. We’ve invested over £5 million and six years of research to develop a first-of-its kind, draught beer dispense system, SmartDispense, that reduces the water, energy and waste associated with dispensing beer.

Since 2013, it has saved pubs, restaurants and hotels around 14 million litres of water – that’s about 25 million pints. Find out how SmartDispense could save your business water, time and money.

SmartDispense was recognised as environmental innovation of the year at Edie’s Energy and Environment Awards 2016.



http://www.smartdispense.heineken.co.uk/about.html

http://www.smartdispense.heineken.co.uk/about.html

Committed to reducing CO2 emissions across our value chain

EMPLOYEESAGRICULTURE

BREWINGPACKAGING

DISTRIBUTION

CUSTOMERS

Reducing CO2 emissions

For more on our CO2 priorities and why this is important, see our website and case studies.

The Big Picture Climate change is one of the biggest global issues of the 21st century. It’s causing sea levels to rise and more unpredictable and extreme weather events such as floods and droughts. But it’s not just an environmental problem. Unpredictable weather has a big impact on farming and the availability of raw materials, such as the barley and apples that we rely on to make our beers and ciders.



http://www.theheinekencompany.com/sustainability/focus-areas/reducing-co2-emissions

http://www.theheinekencompany.com/sustainability/case-studies

Packaging materialsDistribution

Cooling

Agriculture

Malting and adjuncts

Beverage production

3.9%8.9%

23.7%

7%23.7%

8%

74.3(kg CO -e/hl)2

Area

2012 Baseline (kg CO2-e/hl)

2015 (kg CO2-e/hl)

Change (kg CO2-e/hl)

Agriculture 10.8 8.9 -1.9

Malting & adjuncts 8.3 3.9 -4.4

Beverage production 10.7 8.0 -2.7

Packaging material production 20.8 23.7 +3.0

Distribution 7.0 6.0 -1

Cooling 20.9 23.7 +2.9

Total 75.3 74.3 -1

74 kgCO2-e/hl74 kg CO2-e/hl

HEINEKEN UK’s carbon footprint isReduced GHG emissions

vs 2014

by 17%2014

2016

For a more detailed breakdown of our carbon footprint, see our website.

HEINEKEN UK’s Carbon Footprint

In 2015, we mapped our carbon impacts from barley to bar. Results show our estimated carbon footprint decreased by 1% to 74kg CO2e/hl, compared to 2012 (when we previously conducted this analysis). This was mainly because emissions associated with brewing were substantially lower. But it also shows there is more work to do to lower emissions in our supply chain. Using this analysis, we’re able to focus our improvement programmes on the areas of our business that have the biggest carbon impact.

To reduce our impact on climate change, we have committed to cut CO2 emissions across our value chain by around 40%. To do this we focus on reducing emissions in:

• Production: by installing energy efficient technology and using renewable energy

• Distribution: by efficiently transportating our products to our customers

• Refrigeration: by buying and supplying energy-efficient fridges to our customers through our green fridges programme.


Manchester achieved the biggest energy reduction of any HEINEKEN brewery globally in 2015 – using 27% less energy than it did last year. With over £50 million invested into the site since 2014, we’ve been able to optimise the efficiency of the existing utilities equipment and introduce new, energy efficient technology – such as a modern keg line & mash filters – that are helping us deliver these impressive results. As the Maintenance Manager here, I’m really proud of what my team has achieved. But it doesn’t stop here. These changes are part of a long-term continuous improvement programme that’s helping our business become a modern, efficient and sustainable brewer of the future. Ian Bromley, Maintenance Manager, Manchester Brewery

(Left to right) Ian Bromley, Yutika Patel, Dave Snazell and Ian Saunders



http://www.theheinekencompany.com/sustainability/focus-areas/reducing-co2-emissions

In 2015, we reduced our total greenhouse gas emissions by 17% to 5.9kg CO2eq/hl, compared to 2014. That’s a decrease of 41% since 2008 and means we’ve achieved our 2020 commitment. Our total energy use was down 11% to 82.9MJ/hl. Specifically, electricity use decreased by 8% and thermal energy use was reduced by 12%, compared to last year.

27%

Energy use at Manchester down 11%

reductionin energy use vs 2014

How we did in 2015

2015 5.9

2014 7.1

2013 7.2

2012 9.7

2011 9.8

2010 10.8

2009 9.6

2008 10

Greenhouse gas emissions in productionkg CO2-e/hl beer + cider + soft drinks + water

5.9 kg CO2-e/hl

Electricity use 2015kWh/hl beer + cider + soft drinks + water

2015 6.4

2014 7

2013 7.8

2012 8.1

2011 8.4

2010 8.9

2009 8.9

2008 8.1

6.4 kWh/hl

Thermal energy use 2015 Mj/hl beer + cider + soft drinks + water

2015 59.7

2014 67.7

2013 69.8

2012 76.8

2011 76.6

2010 83.8

2009 78.6

2008 79.8

59.7 MJ/hl

Reducing emissions at our sites

We’ve been able to deliver consistent reductions in energy use and emissions by upgrading our brewing equipment and investing in new, energy efficient technology – mainly as part of a £100m improvement programme at our Manchester and Hereford sites.

Our Manchester brewery is HEINEKEN’s top performing brewery globally, based on the 27% energy reduction it achieved since 2014.

Examples of how we’re reducing energy use across our sites include:

• Hereford – invested £55m into a new, efficient bottling line and cider processing plant

• Manchester – optimized a carbon dioxide recovery system that captures previously wasted CO2, produced during fermentation, and uses it to carbonate our products

• Tadcaster – introduced a fleet of five zero-emissions electric fork lift trucks, which we plan to introduce at further sites in 2016

1. MANCHESTER United Kingdom -27%

2. IJEBU ODE Nigeria -19%

3. ARARAQUARA Brazil -17%

4. TIEN GIANG Vietnam -17%

5. DANANG CITY Vietnam -16%

1. BRNO Czech Republic 61.2

2. DANANG CITY Vietnam 64.7

3. HO CHI MINH CITY Vietnam 65.6

4. TARGU MURES Romania 68.2

5. ELBLAG Poland 68.4

Top 5 performing breweries based on

performance total energy use in MJ/hl

Top 5 performing breweries based on total energy reduction per hl in %

Top 5 performing breweries

Our Operations



1,500 tonnes less glass by light weighting our bottlesbrewed using solar energy

at Tadcaster

20 million pints

Investing in renewable energy

In 2015, around 22% of our energy came from renewable sources (see chart). At our sites, we focus on generating solar energy and biogas to reduce our reliance on fossil fuels.

Our John Smith’s brewery in Tadcaster, for example, has around 4,000 solar panels on its roof, making it the largest solar brewery in the UK. In 2015, we produced around 20 million pints using this solar energy. In total, almost 10% of Tadcaster’s energy comes from renewable sources (solar and biogas) – saving the business around £150,000 each year.

We also have anaerobic digestion (AD) plants at our Manchester and Tadcaster breweries which generate biogas from waste, which is turned into electricity. In 2015, we improved the controls software of Manchester’s AD plant, allowing us to capture and reuse 85% of the biogas it produced and helping us reduce our reliance on natural gas by around 10%.

Electricity mix 2015for Beverage production

Own renewable production 3% Imported renewable (green certificates) 19% Country electricity mix (part renewable) 6% Own non-renewable production 1% Country electricity mix (part non-renewable) 71%

Reducing, reusing and recycling waste We’re committed to reducing waste in our operations and focus on reusing and recycling it where possible. The main waste products from the brewing process are spent grains (73%) and surplus yeast (10%), and materials like glass (4%), cardboard, aluminium, plastic and paper.

Currently, 99% of waste from the brewing process is recycled into feed, compost, energy or other materials. Brewer’s grains and yeast, for example, have a high nutritional value and are recycled for animal or human consumption (as yeast extract). And around 19% is used to

generate biogas, which is turned into electricity and used to power our sites.

Packaging waste

As signatories of WRAP’s Courtauld Commitment 3, in 2015 we continued working with the waste charity, WRAP, to understand our packaging waste streams and look for new ways to reduce them. Since 2014, we’ve reduced packaging waste by 6% – a 16% reduction since 2012. Plastic was where we made the biggest savings, with 73% less plastic waste than in 2012.

Where does our waste go?

Animal feed 50% Compost / soil improvement 23% Energy (biogas) 19% Yeast for food production 5% Materials 2% Landfill or unknown <1%

Lighter packing, fewer emissions

We’re also redesigning our packaging and making it lighter, so it uses less resources to produce and needs less fuel to transport it. In 2015, we reduced the amount of glass in our Foster’s Gold and Radler by around 25g per bottle, – which we expect to save saving around 500 tonnes of glass a year. And Old Mout cider bottles now use 4g less glass per bottle, saving over 1,000 tonnes of glass a year.



fridges comply withGreen Fridge policy

100% Green fridges will save customers around

in 2016£12 million

HEINEKEN buys and supplies fridges to customers that cool our beers and ciders in bars and restaurants. The energy used to keep these products cool accounts for one-third of our carbon footprint, so making sure they’re as ‘green’ as possible is priority for the business globally.

In 2015, we continued replacing conventional cooling systems with energy-efficient models. All the fridges we sold complied with our Global Fridge policy, meaning they perform to a certain level on HEINEKEN’s energy efficiency index and have at least four ‘green’ characteristics. The average energy use of these newer models was 45% less compared with 2010, meaning we’re on track for our 50% reduction target by 2020.

Saving energy doesn’t just reduce our emissions, it also means our customers incur less costs in their businesses. We estimate that globally, our green fridges will save customers around £12 million on their electricity bills in 2016.

Low-energy refrigeration

Efficient distributionIn 2015, we continued to look for ways to reduce emissions associated with transporting our products, but it remains a challenge. We reduced carbon emissions by 0.6 % to 2.7tCO2e/hl (that’s 42,765 tonnes CO2 in absolute terms) – so we’re making progress. However it means we’re off track to hit our 20% reduction target by 2020.

We’re working hard to improve our performance. For example, exporting Newcastle Brown Ale to the US accounts for a significant proportion of these emissions, so doing this more efficiently was a focus in 2015. By simply packing each sea container more tightly we’ve reduced our emissions by 330 tonnes a year (see case study).

Case study:A little change makes a big difference

HEINEKEN UK sends millions of cases of Newcastle Brown Ale to the USA each year. All this beer travelling over 5,200 miles has a big carbon footprint and cost. In 2015, we explored new ways to pack each sea container used to ship it over and found a little change could make a big difference. By fitting just one extra pallet in each, we could deliver our beer using 213 fewer containers – saving the business thousands of pounds and cutting our CO2 emissions by 330 tonnes.

1 extra pallet = 213 fewer containers and 330 tonnes less CO2 a year

1 per hector litre of beer produced.



We use 30% of all apples produced in the UK to make our ciders.

Sourcing sustainably

For more on our sustainable sourcing priorities and why this is important, see our website.

One of our orchards in Herefordshire during harvest.

The Big PictureA sustainable agricultural industry is vital to the success of our business and we’re a big supporter of British farming. All the barley we use to brew our UK beers comes from UK farms. We also use around 30% of all the apples produced in the UK to make our ciders.

We know we can never take a good supply of quality barley and apples for granted. Our weather is becoming increasingly unpredictable and raw materials more scare or expensive. By helping to secure barley and apple production now, we’re making sure that both our business and rural communities can prosper in the future.



http://www.theheinekencompany.com/sustainability/focus-areas/sourcing-sustainably

Our cider apples come from

10,000 of our cider apples are sourced from sustainable farms

73%acres of UK orchards


We focus on sourcing locally and sustainably to improve the quality of life for farming communities, enhance the environment and secure our barley and apple supply.

Sustainable apples for our cider We source our cider apples from around 180 farmers and 10,000 acres of orchards, mainly in Herefordshire.

To help promote more sustainable apple production we encourage all our apple farmers to become members of the HEINEKEN Sustainable Cider Apple Scheme. Around 62% of our largest grower are now members. And in 2015 we sourced 73% of cider apples from sustainable farms, exceeding our target of 60%.

To join the Scheme, farmers must demonstrate compliance a code of practice developed in-line with the Sustainable Agriculture Initiative’s

principles. This makes sure they are using best practice farming approaches on a range of topics – from harvesting to disposal of waste to health and safety. We then provide ongoing advice to help our producers adopt more sustainable practices.

To check compliance, we carry out internal and external audits and develop improvement plans as needed.

I was one of the pilot growers who helped develop the HEINEKEN scheme in 2014, before it was introduced to a larger number of growers in 2015. It’s easy to complete the checklist and a good reminder of what is required to be sustainable. We appreciate that in the future the bar will be raised, and look forward to working with HEINEKEN in developing standards which are relevant to cider apple growers. Bruce Starkey, Cider Apple Grower, Worcestershire.



of UK barleyis Red Tractorcertified

150 UK farmersSharing best practice with100%

Promoting sustainable barleyAll the barley used in our UK brewed beer is grown in the UK. In 2015 we sourced 100% from sustainable sources that were certified to the food and farm assurance standard, Red Tractor.

To help make farming more sustainable at scale we’ve partnered with other food and drinks companies, research institutions and suppliers to help 150 farmers in Yorkshire adopt farming approaches that lower pesticide use and carbon emissions, and improve biodiversity and crop yields.

High supplier standardsWe make sure all our UK suppliers meet our high standards by requiring them to sign our global Supplier Code before we will work with them. This confirms they meet our standards on issues such as: health and safety, working conditions, business ethics, environmental management and performance and guidance regarding sub-contracting.

Case study:More barley with less pesticides and carbon emissions

HEINEKEN UK uses around 115,000 tonnes of British malted barley a year. That’s enough to fill 6,000 lorries! This golden grain is essential to our business. That’s why we’ve teamed up with other food and drinks companies (including Coca-Cola and KP Snacks) research institutions, suppliers and around 150 farmers to make UK agriculture more sustainable and profitable. This initiative, Profiting from Sustainability (PFS), is trialling sustainable approaches to growing barely, sugar beet, wheat, and potatoes, that mean more crops with less pesticides and lower carbon emissions. As part of the ‘barley group’, we’ve teamed up with our malted barley supplier, Muntons, to create a five acre demonstration plot near our Tadcaster brewery that’s trialling low-impact barley production techniques. Farmers will be invited along to see first-hand how these work, and encouraged to adopt them on their own farms.To share best practice, PFS farmers will meet throughout 2016 to discuss and share tips on, for example, new cultivation techniques and waste reduction.The end result will be a more sustainable farming system with less carbon emissions, less chemical use, improved biodiversity and better crop yields.

We have a robust audit procedure to ensure compliance to our Code. We conduct risk assessments on all our tier one suppliers as well as all critical suppliers. If any suppliers are identified as potentially high-risk they are assessed via the external supply chain tool, EcoVadis. Any suppliers deemed to be high risk following this are required to undergo an external site audit which forms the basis of an improvement plan.

Planting sustainable barley demonstration plot in York.



UK’s alcohol consumption down 18% since 2004.

Advocating responsible consumption

For more on our responsible consumption priorities and why this is important, see our Global website.

Some of our colleagues taking part in Act for Addaction

The Big Picture Most people in the UK drink responsibly. In fact, we’re drinking less today than we did 10 years ago. But harmful drinking still affects around 20% of the population and alcohol misuse is one of the biggest issues facing our business.



http://www.theheinekencompany.com/sustainability/focus-areas/responsible-consumption

6.5 million people reached through the Moderate Drinkers Wanted campaign

10% of our Heineken® marketing budget committed to responsible drinking campaigns.

Fully embedding alcohol responsibility into our business is key to our long term sustainability. As a founding member of the Government’s Public Health Responsibility Deal, and with a strong track record of working with others through our various partnerships with Drinkaware, Best Bar None, Community Alcohol Partnerships, PASS, Scottish Government Alcohol Industry Partnership, and Addaction, we’re widely recognised as an active and willing partner in addressing alcohol-related harm.

Making moderate drinking aspirational

While we encourage the enjoyment of beer and cider in moderation as part of a healthy lifestyle, we recognise there are health and behavioural risks associated with consuming too much either over time or on single occasions. We have a genuine commitment to making moderate consumption the social norm by actively using our brands

including through the Heineken® brand campaigns ‘Sunrise’, ‘Dance More Drink Slow’ and ‘Moderate Drinkers Wanted’.

There’s been a significant shift in consumption patterns in the past decade. We believe there’s a real opportunity to take a targeted approach to build on the momentum and encourage more people to drink responsibly.

We want to promote quality over quantity and spread the message that getting drunk isn’t ‘cool’. By showing positive behaviour instead of criticising bad behaviour, we believe we can help change consumer attitudes.

We kicked off 2016 with the launch of the third in a series of exciting global responsible consumption campaigns. ‘Moderate Drinkers Wanted’ was launched through the Heineken® brand as we continued on our mission to make moderate drinking aspirational.


Scene from ‘Moderate Drinkers Wanted’, our latest responsible consumption campaign.

We use the Heineken® brand to encourage moderation because brands resonate with consumers and Heineken®, as the most global international premium brand, provides the perfect platform to spread the message of moderate consumption. Our global commitment is to spend at least 10% of our marketing budget on responsible drinking campaigns through the Heineken® brand.

‘Moderate Drinkers Wanted’ focuses on the impact that drinking to excess has both on the individual and on those around them. Our research makes it clear that more and more people see being in control and moderating consumption as cool and want to spend their time with people who stay in control. ‘Moderate Drinkers Wanted’ brought that insight to life.

Sunrise Dance More Drink Slow Moderate Drinkers Wanted

Heineken® campaigns to make moderate drinking aspirational



for Addaction’s Veterans Right Turn programme and volunteered more than 800 hours for the charity.

Colleagues raised £158,000 years in partnership

with Addaction

Ten years

2015 marked a decade in partnership with Addaction – the UK’s largest specialist alcohol addiction charity. Since 2005, we’ve worked with Addaction to develop pilot projects in communities across the UK, enabling the charity to trial and evaluate innovative approaches to tackling alcohol harm.

Celebrating a decade of working together, we stepped up our commitment to putting colleagues at the heart of the partnership.

In 2015, once again we asked everyone in our business to play an active role in our Addaction partnership. Act for Addaction was launched as a call to action to all our colleagues to get closer to Addaction, and in turn, better understand the harm caused by alcohol misuse.

Case study:Community Alcohol Partnerships approaches 100th scheme milestone

Community Alcohol Partnerships (CAP) aim to tackle underage drinking and the resulting harm to local communities. Brining together enforcement, education, community and local business engagement, and provision of positive activity for young people is the hallmark of the CAP model.Since its pilot in 2007, more than 90 CAPs have launched, delivering up to 46% reductions in alcohol-related anti-social behaviour among young people. In 2016, the scheme (co-funded by HEINEKEN and 15 other producers and retailers) will celebrate its 100th scheme and the launch of a further 30. Across the country, CAPs have reduced the sale of alcohol to under 18s, driven down alcohol-related youth anti-social behaviour and increased local residents’ feelings of safety.

Colleagues fundraised another £158,000 for Addaction’s Right Turn programme – a service giving support to veterans struggling with alcohol and substance misuse. Right Turn is aiming to overcome the current barriers in supporting ex-service personnel and reach more veterans earlier by training veteran volunteers in the principles of peer support. The project is being externally evaluated by Sheffield and Hallam University.

Through volunteering and mentoring more than 800 hours with the charity, our wider business awareness and understanding of the issues faced by those dealing with alcohol addiction has really helped us further strengthen our partnership with Addaction.

Our partnership with Addaction has taken one of the most challenging issues for our industry – alcohol misuse – and confronted it head on. We work together to find new solutions to alcohol misuse which deliver significant, lasting benefit for individuals, families and communities across the UK. Our partnership has gone from strength to strength over the last decade. Act for Addaction put our colleagues at the heart of that relationship,uniting our business and opening colleagues’ eyes to the impact of alcohol misuse.. David Forde, Managing Director, HEINEKEN UK

We support the alcohol education charity, Drinkaware and use our marketing, packaging and sponsorship to drive traffic to drinkaware.co.uk, where people can find the facts on alcohol. The Drinkaware logo is on all of ourmarketing materials – from our TV adverts, brand websites, secondary packaging to our festival activation.



Promoting health and safety

For more on promoting health and safety and why this is important, see Global’s website.

The Big Picture Safety is our number one business priority – globally and in the UK. Our goal is zero-accidents by 2020. So whether in production, transportation, sales or support functions, we’re committed to world-class health and safety standards.

Our success is down to the great people who work for us, and keeping them safe is our priority. We’re unequivocal with our colleagues – no job should be done if it can’t be done safely.



http://www.theheinekencompany.com/sustainability/focus-areas/promoting-health-and-safety

2015 1.4

2014 0.5

2013 0.7

2015 29.8

2014 22.7

2013 7.4 7.4

90% of selected colleaguesof safety training

provided completed driver safety training

accreditedHealth & Safety management system

to OHSAS 18001

13,000 hrs

2015 at a glance

Accident frequencyCases/100 FTE, HEINEKEN UK Production Units

1.4

Accident severityLost calendar days/100 FTE, HEINEKEN UK production units

29.8

For more detailed data on (occupational) health and safety, see our GRI 4 Reference Table

How we’re respondingHow we did in 2015

We’ve a solid track record for safety in the UK, which is why we were disappointed that in 2015 we had 11 lost-time accidents in production – an increase from five in 2014. Most of these accidents related to slip, trip and fall (46%) or manual handling (23%). All accidents are investigated to identify the root cause and steps taken to help prevent them from reoccurring.

Getting the basics right We’ve robust systems and policies in place to help avoid accidents from occurring, and procedures to limit harm if they do. Our Health and Safety management system is accredited to the internationally recognised standard, OHSAS 18001.

Safety training for high-risk roles

We focus our training on people who work in high-risk roles. In 2015, we delivered almost 13,000 hours of training to colleagues in production to make sure they’re equipped with the knowledge and skills they need to stay safe.

We also extended our online driver-safety training to include all business drivers. This was completed by 90% of colleagues who we targeted for driver training. We’ve developed a new safe driving policy which all drivers must adhere to. This sets out clear guidance on a range of issues and includes, not allowing colleagues to join conference calls on hands-free devices while driving.

New 2020 commitments

2018 milestoneOperating companies representing 95% of employees have 80% of the actions coming from Life Saving Rules action plans accomplished

2020 commitmentLife Saving Rules action plans fully implemented



http://www.theheinekencompany.com/sustainability/reporting?tab=sustainability

Made safety HEINEKEN’s

No.1 businesspriority

Developed 12 Life Saving Rules

Creating a safety culturePolices and training lay the foundation. But to create a zero-accident workplace, we need to create a safety culture in which colleagues live safe behaviour day-to-day. To help us achieve this we:

• Made safety the number one behaviour that we expect from all colleagues. To help ensure this is put into practice we asked colleagues to demonstrate how they’re ‘putting safety first’ as part of their formal performance review.

• Developed 12 Life Saving Rules (effective from January 2016) which clearly outline the dos and don’ts for high-risk activities. Each rule has an accompanying video explaining what this means in practice.

HEINEKEN Life Saving Rules

Protect yourself against a fall when

working at height

Obtain authorisation before starting

any hot work activity

Obtain authorisation before entering

a confined space

Drive at the allowed

speed

Comply with CO2 procedure when required

Operate vehicles only when authorized

Protect yourself when working with

chemicals

Be sober and free from drugs

Phone hands free only

Wear your seatbelt and helmet

Lock out, tag out before work on machines

or equipment begins

Drive forklift trucks

safely

We pride ourselves on having strong health and safety policies and procedures, and see any accident as unacceptable. So we were really disappointed that several colleagues were involved in accidents while working for us. Despite our systems, procedures and training we know we can, and must, do more. In 2015, we continued to focus on creating a safety culture in which safety is at the forefront of all colleagues’ minds 24/7 – whether at home or work. Behaviour change takes time, but we’ve been working incredibly hard to capture the hearts and minds of our colleagues and make safety their number one priority. I’m looking forward to early 2016 when we’ll kick off a new safety awareness campaign to help make safety relevant to everyone – whatever their role. Shane Gardner, UK Safety & Environment Manager

Looking ahead in 2016

To help keep safety at the forefront of colleagues’ minds we will launch an awareness campaign ‘what does safety mean to you’ to make safety relevant to all colleagues. We’re planning to ask colleagues from across the business to submit a video explaining why safety is important to them, which will be shared on World Health and Safety Day.



Growing with communities

The Big Picture Businesses need vibrant communities in the areas they operate to succeed.

Local community groups are working hard to strengthen communities and do a vital, and often difficult job. We believe that businesses can help. By being a good employer and neighbour, we can create communities where people flourish.

For us it’s important that we’ve strong relationships with our communities. Our breweries, cideries and pubs have been at the heart of UK communities for years and we need to continue to play our part in making them better places to live and work.

For more on growing with communities and why this is important, see our website.

A team of volunteers planting a community orchard in West Dulwich as part of Helping Britain Blossom.

Bringing the magic of orchards to communities across the UK



https://www.heineken.co.uk/case-studies

40 community orchardsplanted or restored

75 orchard leaderstrained

£30 millioninvested in the British Pub

Case study:Helping Birmingham’s biggest hospital blossom

In February 2015, we put down roots at The Queen Elizabeth Hospital in Birmingham, planting over 120 new apple, pear, plum and cherry trees with the help of over 50 green-fingered volunteers. Through the Big Tree Plant, we created a beautiful hospital orchard for staff, patients, visitors and the wider community to enjoy. The fruit coming from the orchard will be used to teach local people how to grow, tend, cook and prepare food – and will all be donated to benefit the community.The orchard will be looked after by various local community groups that’ll work together to make sure it’s well-maintained and can be enjoyed for years to come.

How we’re respondingWe’re working hard to make sure that as our business grows, our local communities prosper too.

Restoring orchards across the UK

In 2014 we partnered with The Urban Orchard Project and The Bulmer Foundation to launch Helping Britain Blossom (HBB), our flagship community programme to bring the benefits of green spaces to communities, particularly in urban areas. Through HBB, people can come together to plant trees, sample their fruits, relax in the orchards or enjoy time together with friends and family.

By the end of 2015 we’d created or restored 40 orchards in Birmingham, Hereford, Leeds, London, Manchester and Scotland. A total of 400 trees were planted in areas where people could really benefit from green space, such as hospitals, schools and housing estates.

We’re also reviving the art of orcharding by training 75 people in traditional orcharding skills, so they can maintain their trees and share their new skills with the wider community in the initiative.

Through planting days, workshops and festivals almost 800 people got together to enjoy our HBB orchards. By 2017, we’ll have created or restored 100 orchards for 90,000 people to enjoy.

Investing in the Great British Pub

We are passionate supporters of the Great British pub. Each year we invest millions into our estate to help our licensees improve their pubs and grow their businesses, while safeguarding the future of the community pub.

In 2015, we invested around £30 million in upgrading our pubs. We refurbished over 100, each having around £175,000 spent on them, along with smaller-scale improvements to a further 100 pubs.

Through this investment we’re improving each pub’s food offering – as well as creating spaces for watching sport or private dining – so our lessees can attract more customers. Since 2012, we’ve invested around £93 million into renovating our pub estate.

Supporting our communities

We want to have a positive impact in the communities where our colleagues live and work. To help us do this, we’ll launch a new partnership with the social platform, Neighbourly, to find inspiring causes in need of a helping hand. In 2016, we’ll open community funds in each of areas we have an office, brewery, ciderie or mill, donating to causes that support local people, improve the environment and bring the community together.

Before investmentHEINEKEN’S £220k investment in our pub is a dream come true. We’ve been able to redecorate the building inside and out, upgrade the kitchen and make over the toilets – not to mention the stunning new outside decking area. The transformation has really helped business pick up, so we’ve also hired 15 new bar, kitchen and housekeeping staff. It’s great to be able to give the local community a warm and welcoming pub back to enjoy with their friends and family. Kieran White, owner of Hazeldene pub in Gretna Green

The Red Lion, Shepperton

After investment




Our people

The Big Picture Our colleagues make HEINEKEN great. In a highly competitive, and increasingly global labour market, we need to attract and retain the most talented and skilled people to remain the UK’s leading cider, beer and pub company.

We pride ourselves on delighting our customers and consumers. Continuing to create a diverse and inclusive workforce gives us the wealth and broad range of experience we need to do this.

Find out more about our great career opportunities on our website.


http://www.theheinekencompany.com/careers

22 engineering apprenticeships

Around

1,700 employees


Making HEINEKEN a great place to workWe employ around 1,700 full-time employees at our sites across the UK. Around 60% of our people work at our production sites, making our great beer and cider brands. We also offer professional careers in areas including finance, marketing, innovation, logistics, corporate relations and HR.

In 2015, we continued to invest in our people to make sure we have the right people with the right skills to support our business.

Helping our people reach their potential We offer exceptional career development opportunities to colleagues working at all levels of the business.

• Our apprenticeship scheme is for people early in their careers. In 2015 we had 22 young people enrolled on our four-year programme, which provides on-site and classroom-based learning to develop skilled engineers. Over 95% of apprentices stay on with us after graduating to gain a full-time job.

• We offer a two year programme in supply chain and commercial to between four and eight high-performing graduates every two years.

• Our coaching programme enables colleagues in more junior roles to benefit from the knowledge and experience of those working in more senior roles. In 2015, 50 benefited from the programme and 13 of our mentors gained accredited ILM Level 3 Certificate in Mentoring.

Joining HEINEKEN’s engineering apprenticeship scheme has been a life-changing experience. I started when I was 19 after trying a few jobs in different industries. The scheme has given me a career, not just a job, and I’m really proud of what I do. I’m now visiting local schools to tell teachers and students about how rewarding an engineering career at HEINEKEN is – so other young people can benefit from the scheme too. Stephen Miller, engineering apprentice

To truly foster diversity we’re working to address bias in decision-making that people themselves are not aware of. We’re developing a training programme designed to deal with unconscious bias, which we plan to pilot during 2016.

Evolving our approach to people Our ambition is to be the go-to employer for people looking for exciting and rewarding careers. To achieve this, we’ve developed an ambitious People Plan. The aim, to further drive our business performance through what we do with, and for, our people.

Promoting a diverse and inclusive workforceWe embrace diversity and create a workplace that’s inclusive to all people regardless of age, gender, ethnicity or nationality.

Our colleague handbook outlines the standards we expect on a range of issues, including equal opportunities. To make sure any personal or professional concerns can be easily raised we offer a confidential 24-hour helpline, Speak Up.




32 Faces of HEINEKENto help us attract talent


Using our people and brands to attract talentIn 2015, we launched our ‘Faces of HEINEKEN’ campaign to help attract and retain the skills we need to grow our business. We’ve chosen 32 colleagues from across the business to front the campaign as our ‘faces’. From brand managers to accountants, brewery operatives to sales managers and engineers to orcharding specialists, our ‘faces’ represent the diversity and talent at all levels of our business. They will be our ambassadors who share stories on why they love working for us, so people externally get an insight into what life’s really like at HEINEKEN.

After a successful internal campaign, in 2016 we’ll be hitting the streets of Manchester and Edinburgh, two areas we want to attract more talent, with a bold and impactful external advertising campaign to share with potential recruits the reasons why HEINEKEN is a great place to work, and encourage them to find out more.

Alex Jones,Logistics Manager,

Edinburgh

I love the atmosphere and

the team spirit at HEINEKEN.”

“

P R I D E I N W H O W E A R E , P A S S I O N F O R W H A T W E D O .

Chelsey WroeEmployee Comms Manager, Corporate Relations

From the Netherlands to Brazil, and the US in between, Chelsey’s seen the world with HEINEKEN.

The Faces of HEINEKEN campaign has turned the ‘faces’ into HEINEKEN celebs! As part of the internal launch, life-sized pictures of me appeared in our offices overnight. This was funny to see, but it’s been great to share with others why I love working here. And great to find out what my colleagues like about their jobs. I’m looking forward to the external launch next year when I’ll be fronting a campaign in Edinburgh to let potential employees know about the amazing opportunities here for them. Chelsey Wroe, Employee Communications Manager, Corporate Relations, Edinburgh





Making progress with our partners Partnership is at the heart of our approach to Brewing a Better World. In 2016, we’ll continue to grow the strong relationships we’ve built over the years. We’ll be responding to our partners guidance and using their expertise to better tackle alcohol harm and promote moderation, support local communities and reduce our environmental impact across the supply chain.

Thanks to all our partner organisations for their support and advice in 2015.


Documents

Sustainability Report 2015 - Heineken UK · Environment (climate change, environmental protection, water, waste, energy) 2. Public health (responsible consumption, obesity) 3. Economic